iSuppli: Desktop and server markets to decline, while notebook segment grows

Desktop shipments fall 20 per cent

Market research has found that shipments of desktop PCs fell by 23 per cent in the last quarter and this pattern is expected to continue throughout the current quarter too.

The result, according to iSuppli, will be that the desktop segment will have shrunk by 21 per cent in the first six months of 2009. The researcher predicts that if trends continue at the current rate, the overall PC market will see an annual decline in excess of four per cent.

The server market also showed signs of shrinkage, with shipments down 11 per cent compared to the same period last year.

However, while the desktop segment has declined, the notebook sector has continued to see growth, despite the adverse economic conditions, with combined notebook shipments expected to increase by 12 per cent in the first six months of 2009.

“As a result of the uncertainty, there has been a reduction in consumer willingness, and ability, to spend money,” wrote the reports author, principal analyst Matthew Wilkins.

“When consumers or companies that are able to spend money decide to buy a PC, iSuppli believes that in many cases the desktop platform is struggling to compete with the very strong value proposition of the notebook PC. Therefore, shipments of desktops are declining while those of notebooks are growing.”

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